Pidilite Industries is acquiring complete interest in US-based Huntsman Group’s Indian subsidiary Huntsman Advanced Materials Solutions (HAMSPL) for a consideration of about Rs 2,100 crore. The board of Pidilite Industries approved a definitive agreement with the Huntsman Group for acquiring 100 percent stake in one of their subsidiaries in India.
This deal is for a cash consideration of about Rs 2,100 crore, excluding working capital and other adjustments, subject to certain preconditions being met prior to closing of the transaction. The target company HAMSPL manufactures and sells adhesives, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in India. In 2019, the company’s business revenue was approximately Rs 400 crore.
The acquisition pitch by Pidilite includes HAMSPL’s Indian sub-continent business as well as a Trademark licence for Middle East, Africa and ASEAN countries. Huntsman Group is a global producer of differentiated organic chemical products.
Under the terms of the agreement, Huntsman Group will receive approximately 90 percent of the cash consideration at closing and balance approximately 10 percent under an earnout within 18 months if the business achieves sales revenue in-line with 2019.